Dow Jones Utilities Breaking Trend

Research Highlights:

* Dow Theory suggests indices must confirm each other and volume must confirm the trend.

* The new downward trend in the Dow Utilities Index suggests indices are starting to break apart in terms of trending in unison.

* Volume recently has been trailing lower, which suggests the momentum behind these new all-time  highs is weakening.

* If the Utilities Index continues to move lower and we see increased volume in the selling trend, we will     consider the Dow Theory

* Trend component “broken” and expect a major peak/top soon after.

We know some of you are Dow Theory enthusiasts and followers. We follow the Transportation Index as a leading indicator for potential major market trends almost exclusively because of what we have learned from Dow Theory. If you are unfamiliar with Dow Theory, we suggest visiting Investopedia’s summary of this technical theory for a quick refresher. You can also learn more about the primary indicator in Dow Theory here. The two most important aspects of Dow Theory that we are researching today are two components:

Indices Must Confirm Each Other Volume Must Confirm The Trend My researchers and I have identified that the Dow Jones Utility Index has started to break downward in trend, breaking the recent upside price trend. This breakdown in the Utilities Index suggests the Indices are starting to break apart in terms of trending in unison. We have not seen increased volume in the downward trending of the Utility Index yet and we are waiting for this technical trigger to confirm the Breakdown in Dow Theory Trending by watching for the Utility Index to potentially begin a broader downside price move with increased volume. ...Continue Reading Here.

Natural Gas Rally Nearing $2.95 Resistance - May Target $3.75 or Higher

Quietly, as we’ve been focused on Gold, Silver, and other symbols, Natural Gas has rallied above the $2.00 level and is starting to break higher again targeting the $2.95 level. The very deep “rounded bottom” pattern that set up in early 2020 presented a very real opportunity for skilled technical traders by setting up multiple, very deep entry points. We wrote about these setups in a May article when Natural Gas broke $2.00 and again a few weeks ago when NG started its upside breakout move.

The current rally as seen in the chart below appears to be stalling near the $2.50~$2.55 level, which goes all the way back to the Fibonacci Predictive Modeling System trigger levels from April 2020 and October 2020 (see the RED LINES on the chart). We believe any stalling price levels near the $2.55 level will breakout to the upside with a further rally attempting to target the $2.95 level. After that level is reached, there is a potential that a further upside price move may take place, but we would urge skilled traders to consider the $2.85 to $2.95 level as the “pull profit” level. Any further leg higher may, or may not, actually happen....Continue Reading Here.

Precious Metals Cycles Demand Attention

Over the past few weeks and months, my research team and I have been actively publishing this research to help you better understand what is really happening in the markets right now. With Gold trading above $2,000 for the first time and Silver trading near $27.50, skilled traders need to understand the risks in the markets that precious metals are warning of. Think of it like this, as long as Gold continues to trade near or above $1900, the risk levels in the global markets are at extreme levels for traders and investors. If Gold breaks above $2,400, then there is a very real concern that the global markets could be close to some type of decline/collapse event.

1990 TO 2010: SIMILARITIES ABOUND

My research team believes the US stock market has already peaked near the January/February 2018 market highs. Our proprietary index analysis and price modeling systems suggest the US stock market has been buoyed by the U.S. Federal Reserve stimulus and foreign capital inflows (investment) while the US Dollar has strengthened. This trend may continue for a number of weeks or months, but precious metals are already warning that real fear has accelerated to levels we’ve not seen since 2010-2011....Continue Reading Here.

Caution Advised Before Gold Targets $5000 and Silver Targets $100

Tom welcomes Chris, the founder of Technical Traders, back to the program. Chris discusses the enormous short position on silver and why it will take a while to unwind.

To subscribe to our newsletter and get notified of new shows, please visit http://palisaderadio.com Silver has hit his previous targets and appears to be moving higher. He says, “We are now in a bull market for silver,” and he gives us his next targets. More upside remains for the metals, but the broader markets will probably roll over later this year. That will likely spark a sell off and after that correction who knows how high silver and gold can go.

Currently, there is zero fear in this market, and investors are becoming overleveraged. This is typically when everyone gets caught holding the bag, and while the Fed may try, they probably can’t maintain this level of market momentum.

The dollar is beginning to fall, having broken its March lows and appears set up for a significant downtrend.

The problems today are bigger than in 2008, and as the economy worsens, the Fed will attempt to print more, which can only be bullish for metals. Globally, interest in gold due is increasing due to concerns about the economy and policies of central banks.

Time Stamp References:

* Shorts are starting to sweat.
* Silver technicals.
* Timeline for targets.
* Exposure and volatility.
* US Fiscal cliff and the dollar.
* Gold and Silver in a general equity drop.
* Transportation index and signals.
* Trend for oil and possible correction.
* Real estate and commercial in particular.
* Caution from here?


   Watch the Video Here

Silver Begins Big Upside Rally Attempt

The move we saw in Silver early this week to new 6-year high price levels, above $22.60, is quite likely the biggest upside move in Silver since the bottom in March 2020 – after the US stock market collapsed because of the COVID-19 virus event. This new rally in Silver is likely the move we’ve been suggesting to our followers relating to a series of measured upside price moves totaling approximately $5.30 in each advance.

We wrote about these measured price moves in Gold and Silver in this article – Click Here

As traders, watching bonds accelerate moderately higher as the US Dollar falls and the stock market attempts new lofty levels, we are intrigued by the move in metals because it suggests a large segment of investors believe a bubble is nearing very peak valuation levels. The only reason metals, particularly Silver, would be accelerating as it has recently is that traders have suddenly adopted a stronger demand for second stage hedging of risk....Continue Reading Here.

Energy Sets Up Near Major Resistance - Breakdown Pending

Our research team believes Crude Oil and Energy, in general, has stalled near major resistance and maybe setting up a big downside move as the COVID-19 virus continues to roil regional and global economies.

The recent news that the COVID-19 virus cases have skyrocketed suggests further economic shutdowns may push oil prices below $35 ppb over the next few weeks and months. Our researchers believe Oil has already set up a resistance level near $42 and will begin to move lower as concerns about the economic recovery transition through expectations related to oil demand going forward. We believe the renewed global economic demand for oil will present a very real possibility that oil could collapse below $35 ppb over the next 30 days.

We believe this pending downside move in Crude Oil will set up a great trade opportunity in ERY, the Direxion Bear Energy 2x ETF. At this point in time, we are just waiting for the technical confirmation of this trade trigger. Once we receive confirmation from our price modeling systems, we believe ERY may rally 20% to 30% or more from current levels....Continue Reading Here.

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U.S. Stock Market Stalls Near a Double Peak

The U.S. stock market stalled early this week as earnings started to hit. A number of news and other items are pending with earnings just starting to roll in. There have been some big numbers posted from JP Morgan and Goldman Sachs. Yet, the markets have reacted rather muted to these blowout revenues.

We believe this is a technical “Double Top” set up in the making. The NASDAQ has been much weaker than the S&P and the Dow Industrials. We believe the US stock market is reacting to the reality of earnings and forward guidance after the recent rally in price levels over the past 9+ weeks. If we are correct and this Double-Top pushes price levels lower, then this technical resistance level may become the price ceiling headed into Q3 and Q4 2020.

Let's start with the E-MINI S&P 500 Weekly Chart....Continue Reading Here

Retail Traders & Investors Squeezed to Buy High Risk Assets Again

Yes, we certainly live in interesting times. This, the last segment of our multi-part article on the current Q2 and Q3 2020 US and global economic expectations, as well as current data points, referencing very real ongoing concerns, we urge you to continue using common sense to help protect your assets and families from what we believe will be a very volatile end to 2020. If you missed the first two segments of this research article, please take a moment to review them before continuing.

On May 24th, 2020, we published this research article related to our super cycle research. It is critical that you understand what is really happening in the world as we move through these major 21 to 85+ year super-cycles and apply that knowledge to the data we have presented in the first two segments of this research post. Within that article, we quoted Ray Dalio from a recent article published related to his cycle research.

That rather chilling statement suggests one thing that we all need to be aware of at this time: what the current and future economic cycles will likely present and how the world will navigate through this process of a cycle transition....Continue Reading Here

Wild Volatility Continues as U.S. Markets Attempt to Establish New Trend

We’ve continued to attempt to warn investors of the risks ahead for the U.S. and global markets by generating these research posts and by providing very clear data supporting our conclusions. Throughout the entire months of May and June, we’ve seen various economic data points report very mixed results – and in some cases, surprise numbers as a result of the deep economic collapse related to the COVID-19 virus event. This research post should help to clear things up going forward for most traders/investors.

As technical traders, we attempt to digest these economic data factors into technical and price analysis while determining where and what to trade. We attempt to identify the “Best Asset Now” (BAN) for trading based on our proprietary technical analysis and predictive modeling tools. We also attempt to stay away from excessive risks in the markets. The reason we adopt this strategy is to help protect assets and to attempt to assist our clients and followers in avoiding sometimes foolish trading decisions that can destroy your account and future.....Read More Here

Gold & Silver “Washout” - Get Ready for a Big Move Higher

Gold and Silver moved lower early on June 2nd and 3rd. Our research team believes this is a “Washout Low” price rotation following a technical pattern that will prompt a much higher rally in precious metals. This type of washout price rotation is fairly common before very big moves after Pennant/Flag formations or just after reaching major price trigger levels.

With Gold, a sideways Pennant/Flag formation has been setting up near our GREEN Fibonacci Price Amplitude Resistance Arc. We believe the downward price rotation recently is a perfect setup for skilled technical traders to take advantage of lower entry price levels. The GREEN Fibonacci Price Amplitude Arc will very likely be breached over the next 5 to 10 trading days and the price of Gold should rally well above $1850 in the process. We believe this Washout Rotation is a process of running through the Long Stops just below recent price activity that will end with a defined upside price rally over the next 2 to 5+ weeks.

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Silver has set up a completely different type of price pattern – a true Double-Top pattern. The downward price rotation recently in Silver is indicative of a weaker reaction to this massive resistance pattern and Double-Top. The likelihood that Silver will find support above $17 and mount a further upside price rally over the next 2 to 5+ weeks is still very strong. After the deep downward price collapse in Silver took place, just like what happened in 2009 and 2010, the upside potential for Silver is still massive – likely targeting $65 per ounce of higher.

This current Gold to Silver Ratio Monthly chart highlights the recent collapse in the ratio level as Silver rallied from near $12 towards current levels near $18. A similar spike in the Gold to Silver Ratio took place in 2008-09 – just before the broader market collapse in the US and Global markets took place. This happens as the initial reaction to risk in the global markets pushes Gold prices a bit higher while Silver, the often overlooked store of value, typically declines in value.

Once the price of Silver starts to rally, pushing the Gold to Silver ratio below 60 typically, both Gold and Silver start to align in price and begin to rally together. The current level of the Gold to Silver ratio is 94.9. This suggests that both Gold and Silver have quite a way to go in terms of reaching the “alignment phase”. Our researchers believe Gold will rally above $2100 to $2400 and Silver will rally above $40 to $50 before the two metals align and begin to rally together in almost equal strength.

Concluding Thoughts

Pay attention to what happens to precious metals over the next 10 to 15+ days. If our research is correct, both Gold and Silver will rally higher by about 7.5% to 14% – setting up new price highs for both metals. When the washout pattern completes, usually a fairly aggressive price trend begins where new price highs are established fairly quickly. Get ready, this should be a really nice upside price swing in precious metals over the next 6+ months or longer.

The next few years are going to be full of incredible opportunities for skilled traders and investors. Huge price swings, incredible revaluation events, and, eventually, an incredible upside rally will start again.

I’ve been trading since 1997 and I’ve lived through numerous market events. The one thing I teach my members is that risk is always a big part of trading and that’s why I structure all of my research and trading signals around “finding profits while reducing overall risks”. Sure, there are fast profits to be made in these wild market swings, but those types of trades are extremely risky for most people – and I don’t know of anyone that wants to risk 50 or 60% of their assets on a few wild trades.

I’m offering you the chance to learn to profit, as I do with my own money, from market trends that I hand-pick for my own trading. These are not wild, crazy trades – these are simple, effective, and slower types of trades that consistently build wealth. I issue about 4 to 8+ trades a month for my members and adjust trade allocation based on my proprietary allocation algo – the objective is to gain profits while managing overall risks.

You don’t have to spend days or weeks trying to learn my system. You don’t have to try to learn to make these decisions on your own or follow the markets 24/7 – I do that for you. All you have to do is follow my research and trading signals and start benefiting from my research and trades. My new mobile app makes it simple – download the app, sign in and everything is delivered to your phone, tablet, or desktop.

I offer membership services for active traders, long term investors, and wealth/asset managers. Each of these services is driven by my own experience and my proprietary trading systems and modeling systems. I have a small team of dedicated researchers and developers that do nothing but research and find trading signals for my members. Our objective is to help you protect and grow your wealth.

Please take a moment to visit The Technical Traders to learn more. I can’t say it any better than this… I want to help you create success while helping you protect and preserve your wealth – it’s that simple.

Chris Vermeulen
Chief Market Strategist
Founder of the Technical Traders